Question

Question 1

1. How important do you think that the credit unions are to the financial system?
2. Do you think that credit unions should be subject to the same regulations as commercial banks?

Question 2

Discuss the operation of wholesale and retail cooperatives. Provide examples where necessary.

Question 3

Asses the role and functions of the various regulatory bodies in relation securities regulation in the United States, United Kingdom, and Canada and compare to those in the Caribbean.                  

Question 4

Give an assessment of the work of The International Organization of Securities Commissions.   

Question 5

Discuss the role of the Caribbean Financial Action Task Force (CFATF) in regional financial crime fighting.

Answer 1

Answer(1): (a): Credit Union- It is a financial cooperative that is created, owned and operated by the participants. It is organized for its members who can get loans from it. Members of credit union pool their money and it is distributed in the form of loan whosever is needed within the organization.

Importance of credit union in Financial system- It provides higher rates on savings and lower rates on loan. It increases the efficiency of the financial system by taking money from those who have it and by lending those who need it.

(b): Credit unions operate like banks but they are not commercial banks, there is big difference between the two. Credit union is not for profit organization while commercial bank is for profit organization. Credit unions should not be subject to the same regulations as commercial banks.

Answer(2): Operations of wholesale and retail cooperatives-

Wholesale Cooperative: It is the cooperative society that buys the goods in bulk and sell them to the members or group of people.

Example: Scottish Wholesale cooperative society

Retail Cooperative: It is a group of people who buy the goods in large quantity together so that cost and expense can come down. This cooperative society employs economies of scale for its members, retailer cooperatives use their purchasing power and influence the manufacturer to sell the goods at lower price as it is a collective buying.

Example: Carper One in USA.

Answer(4): International Organization of Securities Commissions- It is an association of the organization that regulate the securities and futures market in whole world. Its headquarter is in Spain. There are about 220 members of International Organization of Securities Commissions.

Goals of International Organization of Securities Commissions: Are as following:

• They promote high standards for security and safety of the financial markets.
• They assure the efficiency and fairness in the markets.
• They monitor global investment transactions across borders.